25-29 Economic Calendar: Blah Replaced: Every Day's a Meh+OK-
What looked like a good day turned into an ugly rout when Faux News Network entertain non voting Fed Chairman Plosser's off the wall remarks on how ineffective the bond buying program is, about how irates are going to have to be raised before Bernanke's mid 2015 pronouncement--all blathered about 1230 EST, then sticks the needles in further by stating "nothing will work" and comments pointing to Fed impotence, around 230 PM EST capping a day of sharp sticks in the eyes of all investors. It's no secret that the forum and the speaker aren't friends of the administration, so every investor in America took a drubbing for even thinking about Bernookie and Obummer.
Do I think this was a calculated ploy? No but I think it was a perfect storm of small minds thinking together, and a willingness to do anything, on the part of Faux News Network, to arm wrestle votes for the other side by whizzing off any investor who has the temerity to understand the S and P has come 16% up these past few months.
Do I think Plosser is right? Probably, but the confidence level of investors is as real as the P and L statement-he shouldn't be the one speaking out of school-why we didn't hear Cramer go off on a rant similar to the one he offered against banks making similar gloom and doom statements leaves me awestruck.
And about $20K lighter. Housing actually has been improving nominally across America--we're now up to 2004 prices!!! That means, using the fallacious CPI, the "right" nominal value they're shooting for is about 22% higher just to break even with history. About that time, everyone at 110% LTV today should be able to refi under the 80/20 auspice, leaving about 8% of the rest of homeowning America under water. That includes some payment of principal over the next five year period--that's why low irates are required till 2018.
In the meantime, the markets are sneaking forward as they did yesterday, until the wicked witch of the Fed, Plosser decided to get you and your little dog too. Not a fun day, and for no good reason.
So I guess numbers and reality are replaced by negative bullchit. Who'da thunk?
The positives however are there--however manufactured--Plosser's gloom and doom pronouncement proves a couple things--the markets are skittish and the herd can be stampeded by pundits--and the mob believes, however badly, in the Fed being able to do something and confidence, a real force, is still meaningful.
We needed to hold onto that rally in the face of Greek grok this Friday, as they are within a smidge of qualifying for bailout money. Jezzus, that outburst by Plosser was irresponsible.
"Keaton used to say, I don't believe in God, but I'm afraid of Him. Well, Detective, I do believe in God, but the only thing I'm afraid of, is Kaiser Sose."